Sports and Entertainment Marketing Class Mr. Sherpinsky Council Rock School District

Goals  Explain the central focus of the marketing concept.  Explain the reasons for increased sports and entertainment options. Essential Question  What is the marketing concept for sports and entertainment events?

 Think critically page 33  Question: Why is the entertainment industry turning to social media to kick off marketing campaigns?  Question: What can be learned from the marketing campaign used for “The Muppets.” Making an Impact after a 12 Year Absence

 Marketing concept  Productivity  Breakeven point  Opportunity cost

Cooperative Learning Think of a cross promotional campaign you’ve seen. Who was the target?

 Marketing is an important business function.  You are the major part of the process ▪ A business that focuses on addressing customer needs is following the marketing concept

 Marketing accounts for about half of every dollar you spend.  Marketing costs include product development, packaging, advertising, and sales expenses

 The MOST important aspect of Marketing is satisfying customer needs.  When a business focuses on the customer’s need it is said to be following the Marketing Concept.

 Successful customer relationships are critical to the marketing concept.  Customers are unique. Know who you are dealing with.  Customer satisfaction is the bottom line for successful marketing relationships.

 productivity  rate at which companies produce goods or services in relation to the amount of materials and number of employees utilized

 Productivity: Needs can be met faster than ever before  This means satisfying relationships are paramount!  Developing products that exceed user expectation results in repeat users  Earning profits

 Numerous Choices  Every weekend there are numerous entertainment choices for consumer dollars  Sports vs. Entertainment Options  Tournaments and housing  Movies vs. Netflix, Redbox, Hulu  Satellite vs. cable  Pay-for-view vs. HD TV

 breakeven point  the minimum sales and attendance required to cover all of the expenses of organizing, planning and promoting the event  profit  revenue earned beyond the breakeven point

 opportunity cost  the value of the next best alternative that you forgo when making a choice  The value is measured in terms of the benefits that you are giving up.

Business POV Student POV

 Fixed and Variable Cost Analysis Worksheet  Three GUYS PIZZA Emporium  Review Concepts ▪ Answer Questions ▪ Calculate Costs (fixed & variable) ▪ Calculate Breakeven Point ▪ Fixed Cost/Contribution Margin= BE Point in Units ▪ Contribution Margin = Sale Price – Variable cost ▪ Contribution Margin means Profit

 Fixed and Variable Cost Analysis Worksheet  EAGLES Stadium Ice Cream Vendor  Review Concept ▪ Answer Questions ▪ Calculate Costs (fixed & variable) ▪ Calculate Breakeven Point ▪ Fixed Cost/Contribution Margin=BE Point in Units ▪ Contribution Margin = Sale Price – Variable cost ▪ Contribution Margin means Profit

 On a piece of paper  Answer Questions  1-4 on page 38 ▪ Be complete!

Goals  Explain the importance of understanding buyer behavior when making marketing decisions.  List and describe means of collecting marketing information for use in decision making. Essential Question:  Why must sports and entertainment venues conduct research to keep repeat customers?

 economic market  benefits derived  comparative advantage  emotional purchases  rational purchases  patronage purchases

 Cooperative Learning  Partners: ▪ You need a Sponsor? ▪ Where would you look? ▪ How would you connect your mission with their interests, drive, and money? ▪ What would you say specifically?

 economic market  all of the consumers who will purchase a product or service

 benefits derived  the value people believe they receive from a product or service

 the capability to produce products or services more efficiently and economically than the competition comparative advantage

 hierarchy of needs  identifies five human areas of needs

 spending with little thought during emotional times emotional purchases

 define wants and needs  assess priorities and budget  conduct research  compare alternatives  make a well thought out purchase rational purchases

 based on loyalty to a particular brand or product patronage purchases

 Online Stores: Data Measurements ▪ Shopping cart abandoners ▪ People who start to make an online purchase, but leave the website without completing their purchases  Can be seen as lost sales  Generally provides an opportunity  Reminder s lead to more sales

What is meant by benefits derived? The value that people believe they receive from buying a product or service

What forms of entertainment will continue to grow due to an increase in fuel costs and other current trends? Online, On-Demand, and other Home Media forms of entertainment

 Marketers are often involved in every step of the decision-making process.

 recognize a need or a want  conduct product research  evaluate choices  decide what to purchase  evaluate the product after the purchase The decision-making process involves the following steps.

 Information about consumers that is important to consider include:  demographics  shopping behaviors  how consumers spend money  product and brand preferences  frequency of purchases

 economic uncertainty reduces consumer spending  marketplace competition provides consumers with choices  technological advances have impacted how consumers research and buy products The business environment impacts consumer spending as follows:

 internal sources  a business’s own customer records, sales records, production records, and operation records  external sources  government reports, trade and professional organizations, business publications, commercial data, and information services

 obtained for the first time and specifically for the particular problem or issue being studied  information previously collected for another purpose but is now found useful in the current study primary data secondary data

primary data and secondary data

Explain the difference between primary and secondary data.

 Complete Census Worksheet for Market Information  Tell me something I want to now about where you live! ▪ EXTRA CREDIT: Name a business that can benefit from your demographics of the place where you live…

 What kinds of business can use the data?  Children related business  Restaurants-Food related vendors  Senior Living assisted home  Income level products ▪ Wal-Mart? ▪ Tiffany’s? ▪ Car dealerships?

 On a piece of paper  Answer Questions  1-4 on page 45  Be complete!

Goals  Define target market and market segment.  Describe how businesses use market segmentation. Essential Question:  How do target markets and market segments affect a business’s marketing efforts?

 target market  market segment  market share  mass marketing

 Cooperative Learning  Partners: ▪ College Sport programs? Think of a successful merchandise sales operation… ▪ What sport(s) at this university have contributed to sales? ▪ Do you think the logo or mascot for your chosen school has an effect on the popularity of their merchandise?

 target market  specific group of consumers you want to reach

 market segment  a group of consumers within a larger market who share one or more characteristics  consumers can belong to multiple market segments.  marketers must identify the market segment to which they want to sell.

 Market segmentation data can improve business decision making.  number of potential customers  customer income level  level of interest in product or service  Location of potential customers

 Mass Market: An attempt to appeal to a large, general group of consumers  Different from market segmentation  Whole focus, not specific piece or segment  Often used when research and analysis is too costly or time consuming

What is a target market? Provide an example of a company using target marketing

Markets may be segmented in many ways. 1. geographic location 2. demographics 3. psychographics 4. behavior

 divides markets into physical locations  North vs. South  East vs. West  Urban vs. Rural  Commonly used in travel and tourism

 information that can be measured  age  income  profession  gender  education  marital status  household size

 characteristics that cannot be physically measured  values  interests  lifestyle choices  Sports fans buy clothing with favorite team logo

 behavioral-based segmentation  focuses on a customer’s attitude toward products and services  product usage  what products you use and how often  product benefits  the positive experiences or associations people derive from using a product or service

 market share  percentage of total sales of a product or service that a company expects to capture in relation to its competitors

List and describe four (4) types of market segmentation.

Geographic Demographic Psychographic Behavioral-based

Goals  Explain the importance of outstanding customer service.  Explain what it means to establish a service culture.

 customer service gap  values-based culture

 Describe the last time you had a bad customer service experience  What happened? ▪ What do you do about it?

King Burger

 Business success depends on excellent customer service.  Customer relationships should continue after the sale of goods and services.

 Customer service gap  the difference between customer expectations and the services actually received  Customers are likely to tell at least 10 people about their poor customer service experiences.

 Individuals hired for customer service positions should have a positive attitude and look forward to meeting the public.  Proper employee training in proactive, efficient and courteous customer service is critical to providing a pleasant experience for customers.

Why is outstanding customer service critical to a business in a highly competitive marketplace?

Communicates value through high performance and excellent customer service  Passion results in energy  Interests in what U Do  Passion energizes people  Demonstrate pride  We help people!  Value long-term relationships

 ZAPPOS.com Online shoe store has effective customer service principles. They are:  Demonstrate a values-based culture that is rooted in high performance and excellent customer service.

Follow the “FAST”  (Focus, Action, Search, Tenacity) strategy.  Passion results in energy.  Demonstrate pride in every sale.  Remember the value of long-term positive relationships.

Common error: Saying “It’s not my department” should be replaced with “How may I help you?”  mystery guest  Hired by an outside firm to have an individual assess the performance of a business ▪ Feedback on the individual’s experience as a customer is provided to the hiring business

Explain what it means to have a values-based culture.

 Adidas:  End of Section Question: ▪ What role do you think marketing played in the success of Adidas?

 Encore Challenge:  Page Questions  Due at end of class!

 Complete End of Chapter: ▪ End of Section Questions 1-16 ▪ Review concepts: ▪ Make Connections: 29-32

 QUIA  EXAM is Monday!  Be ready! Notes Allowed!